The Entrepreneur’s Source Asks: Is Wall Street looking out for you? To make sound investment decisions investors need to expect the unexpected.
The majority of people place the power of their wealth-building and investments on others outside their control: Wall Street. The problem is the financial community they trust to do the right thing and continue to build their portfolios and yield a reasonable return has a history of disappointing investors.
Even those who experience a handsome return are very aware of the risk and are beginning to shift beyond the idea that others should control their wealth exclusively. Many variables impact the results of reactive investments. Portfolios are dependent on the economy, the stock market, rising private and government debt, aging demographics, and many other factors outside of investors’ control.
Looking at the past 20 years, investors have taken many roller coaster rides. A recent survey found that retirees who rely mostly on investments had the highest financial anxiety.
There is no question that investments play an important role in almost everyone’s financial futures not only to pay our living expenses when we retire but also fund the type of lifestyle that we would like to live. However, depending on a stock-heavy mix has too many unknowns… at some point, the music will stop, as it always does.
Forward-thinking investors understand the benefits of reorganizing their investments ahead of changing market conditions.
Do you want to reorganize your assets and savings, but you aren’t sure where to begin? The Entrepreneur’s Source franchise has defined our top five tips for smart investing to help you begin to take control of your investments and turn them into more proactive investments.
- 1. Have a clear plan:
Before investing in anything, individuals should ask themselves why they are choosing that specific venture. People sometimes lose sight of their end goals, so The Entrepreneur’s Source believes that people considering entrepreneurship should start by asking “why” and continue remembering “why” throughout the process.
- 2. Diversification is crucial:
Putting all of your eggs in one basket may turn out to be a recipe for disaster. Instead, investors should vary their portfolios with both passive and reactive investments in order to safeguard against losing control of their return.
- 3. Pick Proactive:
Rather than choosing a group of reactive investments, transfer a share of your portfolio into a proactive investment, such as a franchise. This will allow an individual to gain some control over the return and not rely as much on the stock market or other factors that he or she is not in control of.
- 4. Put emphasis on long-term goals:
Investors should determine their desired Income, Lifestyle, Wealth, and Equity (I.L.W.E.) goals and keep these in mind at all times. Establishing one’s I.L.W.E. goals can help to create a framework for growing a successful business and looking at what you want it to achieve for you in the long term.
- 5. Seek help:
Chances are that this might all be new to you, so enlisting an alternative career coach at The Entrepreneur’s Source can be a great first step in overcoming Battered Investor Syndrome®. An E-Source coach can help keep you on track while also providing you with objective advice and support along the way.
For more information about how an alternative career coach from The Entrepreneur’s Source can advise you in modifying your investments through franchise ownership, contact one today: http://www.entrepreneurssource.com/contact.html.